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Explaining a lot about Executive Comp and M+A

Lifted from a Charles Skorina email:

Kevin Hallock, President, University of Richmond, an expert in the field of executive compensation, and author of “Pay: Why People Earn What They Earn and What You Can Do Now to Make More,” puts it this way:

It doesn’t matter whether company size is measured as assets, market value, sales, revenue, or number of employees — bigger firms pay more … way more.

We can isolate the impact of all kinds of other characteristics (e.g., industry, return on assets, profitability, research and development expense, etc.) and even use complicated statistical techniques to remove the influence of “unmeasurable” characteristics, and the size-to-pay link remains intact.

Here’s the bottom line. Be it Wall Street, Main Street or nonprofit institutions – the bigger the assets, the better your chances at making more money.

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